On March 12, 2018, the City Council heard a presentation about a proposed Pre-Development Agreement for the proposed Eastgate Business Park Project. This action is a follow-up to that discussion.
Property owned by Beyond the Horizon LLC, generally located at the northeast quadrant of Little Blue Parkway and RD Mize Road with a street address of 20000 East RD Mize Road, has been identified as a possible site for mixed-use development, including industrial, office and retail land uses. City staff has been working with the Independence Economic Development Council regarding a package of incentives that could be provided to facilitate the construction of the initial 100,000 square foot industrial building on the property.
City staff has negotiated a Pre-Development Agreement with Sallee Real Estate Investments, LLC, to coordinate the construction of the light industrial building, parking lot and related improvements, which are being designated as the Phase 1 Project. This Pre-Development Agreement will establish the parties' understandings and anticipated course of action regarding the proposed Phase 1 Project and the preparation of a more definitive Performance Agreement which would provide for planning, designing, engineering, financing, constructing and operating the Phase 1 Project.
The Pre-Development Agreement provides that the City Council may, in the future, consider providing the following public incentives for the Phase 1 Project:
1. Tax Abatement - Tax Abatement for 85% of the real property taxes for the Phase 1 Project for a period of 20 years.
2. Public Road Construction, Landscaping and Environmental Testing - City funding and construction of the primary road entrance to the Phase 1 Project, and funding for landscaping and environmental testing, in the combined maximum amount of $964,655.
3. Waiver of Fees - The City will consider waiving fees which are applicable to the Phase 1 Project, which may include grading permit fees, erosion control permit fees, building permit fees, water and sewer tap fees, and the new construction license surcharge.
This Pre-Development Agreement does not bind the Council to take these actions in the future, and all future actions to provide these incentives will be subject to the legislative discretion of the City Council. The Pre-Development Agreement establishes the intended plan of action by the Developer and the City to move forward on the Phase 1 Project. If this Agreement is approved, City staff will continue to coordinate with the Developer to prepare for the Phase 1 Project, including future Council actions to provide the incentives, and Developer will move forward with a financing plan for the private portions of the Phase 1 Project.